Which of the following financial statements shows the movement of cash and cash equivalents during an accounting period?

A. Income statement

B. Balance sheet

C. Cash flow statement

D. Statement of changes in equity

Answer: Option C

Solution(By Examveda Team)

Cash flow statement shows the movement of cash and cash equivalents during an accounting period. A cash flow statement, also known as statement of cash flows or funds flow statement, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.